Navios Maritime Partners L.P. (NMM)


As I plunged into the MLP universe, I wanted something a little less correlated to my other MLPs to add diversification. Shipping seemed like a natural to me. TGP scratched the itch for an LNG shipper. I turned to NMM for even more diversity as a drybulk shipper.

The more I looked into the shipping business, the more it reminded me of commercial real estate. Fortunes are won and lost based on the timing of the market and cost of funds. If a shipping company has low leverage and can take advantage of "cheap ships", they build low-cost capacity and are ready to capitalize on a market turnaround. This seemed like where NMM was at back when I bought in.

NMM has 25 vessels.

Bought in in April 2012 at $16.56. Bought some more in May of 2013 at $14.68, then turned around and sold some in December 2013 at $17.40 to finance other purchases. It's currently (December 2013) up some more at $19.18, with a 52 week range of $12 - 19.70.

I'm up 18.4% and collecting a 9.2% distribution.

NMM reports out taxes on 10-99 rather than K-1s.


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